Shell sells stake in Nigeria’s OML 18 for US$737mn

shellOil major Shell has sold its 30 per cent interest in Nigeria’s oil mining lease (OML) 18 to Eroton Exploration & Production Company for US$737mn

The sale, which includes associated facilities in the eastern Niger Delta, was completed through Shell Petroleum Development Company of Nigeria (SPDC).

SPDC is the operator of a joint venture agreement involving the Nigerian National Petroleum Corporation (NNPC), Shell, Total E&P Nigeria and Nigerian Agip Oil Company.

OML 18 covers an area of 1,035 sq km and includes the Alakiri, Cawthorne Channel, Krakama and Buguma Creek oilfields and associated facilities.

According to Shell, the divestment is part of SPDC’s strategic review of onshore portfolio in the West African country and was in line with the government of Nigeria’s plan of developing local firms in the country’s upstream oil and gas business.

Eroton Exploration & Production Company has also acquired Total’s 10 per cent interest and Eni’s five per cent stake in OML 18, thereby getting a total 45 per cent holding.

Crude oil production from OML 18 is exported via the Bonny crude oil terminal through the Nembe Creek Trunkline.

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